Hotel operator Hilton Worldwide Holdings Inc posted a bigger-than-expected quarterly loss on Thursday, as the coronavirus pandemic decimated global travel demand and hammered bookings.
The company’s RevPAR – a key performance measure for the hotel industry – fell 81.0% in the second quarter.
Hilton’s results come amid rising coronavirus cases in the United States and an extended disruption to travel from COVID-19 leading to tighter corporate travel budgets, an increasing pace of group cancellations and dearth of new group bookings.
The pandemic has forced Hilton and other hotel operators including Marriott International Inc and Hyatt Hotels Corp to lay off or furlough thousands of employees as bookings plunged.
Hilton reported a net loss attributable to stockholders of $430 million, or $1.55 per share, for the quarter ended June 30, compared with net income of $260 million, or $0.89 per share, a year earlier.
On an adjusted basis, Hilton posted a loss of $0.61 per share.
Revenue fell 77.3% to $564 million.
Analysts on average had estimated revenue of $848.7 million and a loss of $0.31 per share, according to Refinitiv IBES data.